An important application of

breakdown is often developed in an amortization schedule. Interest is

largest

interest involves amortized loans. So ation schedule. Interest is largest $$

in the first period and

declines

over the life of the loan, while the principal repayment is

smallest $$

in the first period and it

thereafter.

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Correct

$8\%$ annual return.

a$.$ What will be your annual loan payments? Do not round intermediate calculations. Round your answer to the nearest cent.

$

b$.$ How much of your first payment will be applied to interest and to principal repayment? Do not round intermediate calculations. Round your answers to the nearest cent.

Interest: $

Principal repayment: $